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HomeVestors of America, Inc. is an American privately owned, real estate investing franchisor. It is independently owned and operated franchisees buy homes in need of repair and homes that owners need to sell more quickly than usually can be done through a realtor. Franchisees usually renovate and sell or rent the homes.[1] The company operates in 45 states with over 1000 franchises and growing.[2][3]
| Company type | Franchise |
|---|---|
| Industry | Real estate |
| Headquarters | Dallas |
Key people | David Hicks, CEO |
| Website | www homevestorsfranchise |
The firm is headquartered in Dallas, Texas.[4] Currently David Hicks is CEO and President of HomeVestors.
History edit
Real estate agent Ken D'Angelo founded HomeVestors of America in 1996 and began franchising that same year. By the end of that year, it had 17 franchisees and generated about $800,000 in revenue. It also sold its 25,000th house, in Jonesboro, GA.[5] Franchisees hold the homes for six months on average.[6]
1997
In 1997, HomeVestors reached 30 franchises with $1.7 million in revenue.[7]
2003
By 2003, HomeVestors had grown to 135 offices in 17 states. In February 2004, the company signed an agreement with The Home Depot, making the hardware company its official provider of building materials.[8]
2004
In July 2004, the company launched a real estate-owned (REO) program. HomeVestors purchased single-family houses from its franchisees and called them "ugly notes". They were then sold to third party note purchasers. By the end of 2004 the firm had moved to a larger headquarters. A new mascot was launched, “UG” the Caveman. The company added an additional advertising slogan, "UG Buys Ugly Houses," and both mascot and slogan appeared on new billboards and TV commercials.[9][10]
In 2004, Ken D'Angelo was diagnosed with terminal cancer, and in September 2004 national franchise consultant John Hayes took over as president and CEO. D'Angelo died on January 8, 2005.[11]
2007-2009
After the slowdown in housing sales due to the United States sub-prime mortgage crisis,[12] the firm marketed its services to financially distressed home owners who were facing foreclosures and looking for a quick sale.[13] Holding company Franchise Brands LLC acquired majority interest of the firm on June 11, 2008.[14]
2017
On February 7, 2018, HomeVestors purchased its 85,000th house since its incorporation in 1996. .[15]
HomeVestors passed hands again on April 27, 2017, when it was purchased by the Los Angeles-based private equity firm Levine Leichtman Capital Partners and Management.[16]
Proprietary Tools edit
The company provides franchisees with a proprietary software system, ValueChek, to evaluate single-family homes for repair costs and after-repair market value of a property.[17][18]
The firm, in conjunction with Local Market Monitor, maintained a set of "Best Markets to Invest in Rental Property" rankings, to forecast expected performance of rental properties, particularly single-family homes.[19]
Criticism edit
According to a 2023 investigation by Propublica, many HomeVestors franchisees "used deception and targeted the elderly, infirm and those so close to poverty that they feared homelessness would be a consequence of selling." The company said in response that such deals represent a small share of all transactions.[20]
Awards edit
On October 15, 2018, Franchising Times again named HomeVestors the "third fastest-growing franchise in America."[21]
References edit
- ^ Gibson, Richard. "Companies Offer Innovative Incentives to Lure Franchisees as Competition Grows," Wall Street Journal, August 26, 2008
- ^ "About HomeVestors". Retrieved August 3, 2017.
- ^ "HomeVestors Signs 1000th Franchise". Business Wire (Press release). 28 August 2018. Retrieved 9 January 2019.
- ^ Bernstein, Fred A. (19 February 2006). "Looking for Eye-Catching Profits From Ugly Houses". The New York Times. Retrieved 1 April 2017.
- ^ "HomeVestors® Buys 25,000th House Nationwide". Business Wire (Press release). Retrieved 9 January 2019.
- ^ Steiner, Christopher (3 October 2005). "Diamonds in the Rough". Forbes. Retrieved 1 April 2017.
- ^ "HomeVestors of America, Inc". Reference for Business. Retrieved 9 January 2019.
- ^ "HomeVestors of America, Inc". Reference for Business. Retrieved 9 January 2019.
- ^ "HomeVestors of America, Inc". Reference for Business. Retrieved 9 January 2019.
- ^ "HomeVestors Launches New Ad Campaign and Mascot, "Ug"". HomeVestors. Retrieved 9 January 2019.
- ^ "Kenneth G. D'Angelo". Dallas News. Retrieved 9 January 2019.
- ^ Leland, John (22 October 2007). "Buyers Pounce as Homes Go on the Block". Gadsden Times. Retrieved 1 April 2017.
- ^ Smith, Sandy (15 February 2017). "From Trash to Treasure: The Story of the Ugliest House in America". Philadelphia Magazine. Retrieved 1 April 2017.
- ^ "HomeVestors of America Acquired by Franchise Brands, LLC". Franchising.com. Retrieved 9 January 2019.
- ^ "HomeVestors Purchases 85,000th House". Business Wire (Press release). 7 February 2018. Retrieved 9 January 2019.
- ^ "Levine Leichtman Capital Partners and Management Acquire HomeVestors of America, Inc". Levine Leichtman Capital Partners. Retrieved 9 January 2019.
- ^ "HomeVestors Mobile App Gives Franchisees Real Time Ability to Evaluate Properties, Estimate Repair Costs". PR Newswire (Press release). Retrieved 9 January 2019.
- ^ "HomeVestors of America, Inc". Reference for Business. Retrieved 9 January 2019.
- ^ Timiraos, Nick (11 July 2011). "The Top Markets for Rental-Home Investors". The Wall Street Journal. Retrieved 1 April 2017.
- ^ "The Ugly Truth Behind "We Buy Ugly Houses"". Propublica. Retrieved 11 May 2023.
- ^ "HomeVestors Named the Third Fastest-Growing Franchise in America". Business Wire (Press release). 15 October 2018. Retrieved 9 January 2019.